The iShares 25+ Year Treasury STRIPS Bond ETF with the ticker symbol GOVZ is an exchange-traded fund (ETF) that seeks to track the performance of the Bloomberg Barclays 25+ Year Treasury STRIPS Index. The ETF is designed to provide investors with exposure to U.S. Treasury STRIPS, which are created by separating the interest and principal payments of a U.S. Treasury bond and selling them as individual securities.
GOVZ aims to hold all of the STRIPS in the index and seeks to provide investors with a simple and cost-effective way to invest in long-term U.S. Treasury STRIPS. The ETF's expense ratio, which covers the fund's operating expenses, is relatively low compared to other long-term bond ETFs.
Investing in long-term U.S. Treasury STRIPS can provide a source of income in the form of interest payments, while also potentially providing capital appreciation as the market value of the STRIPS changes. However, it's important to keep in mind that investing in bonds carries certain risks, including interest rate risk, credit risk, and inflation risk. Additionally, as with all bond investments, the market value of GOVZ may be impacted by changes in interest rates, inflation, and other economic and political events. As with any investment, investors should carefully consider their investment goals, risk tolerance, and other factors before investing in GOVZ or any other security.
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